This book is mainly based on the previous works and concepts of the first edition. Since the publication of that edition in 1984 many developments in the international investment climate have taken place, especially the demise of communism, the disintegration of the Soviet Union and the disappearance of the Cold War. These developments have engineered new rules and theories with respect to economic and international relations which have become dominated by globalization, information technology and the free market economy, and these changes have produced new rules on the treatment of foreign private investments, especially after the increased role of these investments in the development process. These developments have necessitated considerable revision and updating of the rules on the subject.

At the same time the opportunity has been taken to revise the entire text. As far as possible the text reflects materials available as at 30 June 2001.

I should like to thank Dr El Fadil Nyle Hassan, the Legal Counsel of the Inter-Arab Investment Guarantee Corporation (Kuwait) and Mr Fahad Al Zamami, Kuwait Investment Authority, for checking the changes in the original manuscript. My thanks also go to Mrs Christine D'Souza and Bridget Fernandes for the care and consideration they have shown in typing the manuscript and preparing the text for the press.